How to write a business plan?

Every day there are more and more entrepreneurs who decide to become self-employed and carry out their projects; however, having a brilliant idea is something very different from carrying it out and for this dream to become a reality, it is necessary to plan and write a business plan.

How to write a business plan
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What is a business plan?

It is about capturing in a physical and structured way all the ideas you have in mind for your venture.

Basically, it is a detailed description of what you consider your ideal business in a realistic, dynamic and clear way.

In order to write a business plan, it is essential to consider that it is not enough to write down your ideas, but you must also determine the objectives to be achieved, the way to do it and the time frame in which you intend to achieve them.

Another way to consider it is as a map to follow to consolidate your business, with which you will be able to undertake in an orderly, planned, logical and able to face the eventualities that may arise.

There is no unique and exclusive way to develop a business plan, so it can be adapted to your needs, the essential thing is that it meets certain key criteria, such as having objectives or goals, the steps to achieve them and the period of time in which they are intended to be achieved.

Although there is no strict format to elaborate it, you can write a business plan based on the existing models on the Internet, they are numerous, varied and editable, which will greatly facilitate this task.

Consider that a business plan is a tool that can be the ideal starting point for you and your company, as long as it is done in the right way.

This business plan is not static, it can be modified when the venture requires it, but the idea is to stick to it as much as possible and not to modify it constantly or in a capricious way.

Finally, it is possible to consider the business plan as a formal document that marks the beginning of any venture, large or small.

Business plan
Black executive explain business plan

What is the importance of a business plan?

Based on the above, it is valid to state that writing a business plan is essential to start any enterprise, since it provides a clearer and more concrete picture of the essence of the company and its direction.

Its importance is centered on the fact that it allows transforming simple ideas into an elaborated plan, as a route to follow, thus guiding any company.

The business plan establishes a clear starting point for entrepreneurs, saving them the headaches and digressions that can arise in the presence of a large number of unfinished ideas.

At the beginning, any entrepreneur may be overwhelmed by not knowing how to start and launch his business, and it is there where developing a plan becomes more than an alternative, it becomes a necessity.

Subsequently, having a business plan allows to evaluate the results after the implementation of the business strategies, analyzing their degree of effectiveness and determining if there is a need to modify or maintain them.

It also makes it possible to establish the achievement of objectives in a given period of time and to optimally allocate resources. In general, it offers a clearer picture of the company’s reality, which is of utmost importance in any business, large or small.

In addition, it is necessary when the entrepreneur requires financing or a loan, since it is required as part of the requirements for granting these economic resources.

Benefits of writing a business plan

Having a business plan allows a company to be efficiently directed and the result to be as similar as possible to the original idea conceived. In addition, it is worth mentioning the following benefits:

Brainstorming for create good business plan

Who must perform it?

Any entrepreneur who wishes to carry out a formal business with the intention of making it successful and, of course, profitable.

In reality, the formal preparation of this plan does not necessarily have to be carried out by the entrepreneur himself, although it is always necessary to actively participate in the process.

If the entrepreneur is not clear about how to write a business plan, he/she can resort to the help of a professional who will be able to give orderly expression to his/her ideas, objectives, goals and other details.

However, it may be more convenient for you to develop the business plan on your own and do it with a trial-and-error method. After all, no one knows your ideas better than you do.

The idea is to get advice and get to know the details before you write your business plan, so that when the time comes, it will be easier for you.

Finally, it is clear that anyone wishing to carry out a business venture should make this plan, especially those who wish to apply for financing or loans in banks, since it is considered as part of the requirements.

Elements of a business plan

There are certain key elements that make up any business plan, these are of utmost importance for it to be carried out properly and to be implemented effectively.

Once you are aware of all the elements that make up a business plan, it will be the perfect time to write it.

Steps to write it

Any formal process requires a work methodology and writing a business plan is no exception. Therefore, it is necessary to take into account the implementation of certain steps.

Brainstorming, where you try to write down on paper everything you consider about the company you want to have or the enterprise you want to carry out.

At this point it is not necessary any specific order, it is only a question of elaborating a tangible outline of your ideas.

Prepare a first draft in which you include all the aspects of the following steps. Do not be afraid of making mistakes, remember that it is a test and then you will be able to make the final one.

Establish the activities inherent to your business, what your venture will be dedicated to.

Determine the current state of your business, whether it is only an idea, concept, the first steps or other.

Although the ideal is to elaborate the business plan at the beginning, it is never too late to do it if you do not have it yet.

Determine the salient aspects of the external market, such as the competition and position you wish to achieve with your company within it.

Establish the clear objectives of the company, for the period of time determined in the plan.

Describe the strategies that will be used to achieve the stated objectives.
Identify and describe the possible eventualities, risks and opportunities that exist within your enterprise.

Determine the alternatives to be implemented in the event that the identified problems, risks or potential eventualities arise.

Elaborate a financial projection in which the investment costs, profitability, income, distribution of economic resources and more are determined.

Evaluate the draft, correct what you consider necessary and write a formal or definitive business plan.

Carry out the necessary procedures, for example, for financing, you will need to document the business plan with determination.

Apply your business plan, sticking to it as much as possible and modifying it only when necessary or when the time period established for its implementation has expired.

Valuable tips when writing a business plan

When writing a business plan, it is essential to consider some key aspects that can be very useful.

Draw up your business plan by prioritizing the objectives, so that you can accomplish the most important ones first.

For example, you should make sure to give the company a virtual presence before implementing digital marketing strategies.

The idea is that you can put yourself in the shoes of your customers or investors and formulate the potential questions that you will answer through planning.

Try to be as clear as possible, the idea is to create a business plan that is visualized in a concrete way, without leaving empty, unfinished aspects or to the imagination; since in addition to generating confusion, it can lend itself to misinterpretations and eventually become a failure.

The clearer it is, the better, use terms that give precision to your plan.

Be brief, remember that less is more, it is not much use to write a 100-page business plan if nobody is going to read it, including yourself.

Generally, the longest ones can take up to 30 pages and tend to be extremely detailed, so being brief, concise and precise will be the best when writing an effective business plan.

You can include details without exaggerating and avoiding excess of unnecessary information that does not add value to the business plan.

Structure your business plan correctly, remember that it should be easy to read and easy to find the particular aspects you are looking for.

In this sense, it is advisable to elaborate it taking as an example the structure we have described in the previous steps, clearly delimiting the points and respecting the inherent content of each one.

The idea is that the text should be easy to read, and to this end it should be written coherently and congruently, so that it can be understood without much effort.

Prepare a document with a formal presentation, without erasures, amendments or erasures, within the margins, preferably printed and with the most orderly structure possible.

The presentation is of utmost importance, it speaks about the image of your company from the beginning and the idea is to transmit an impeccable aspect, much more when it is a requirement to carry out a procedure before financial or similar entities.

Finally, it is essential to mention that writing a business plan is a necessity for any entrepreneur who is considering the possibility of materializing his ideal company.

No ship or airplane embarks on an aimless voyage; everyone has a plan to which they adhere in order to reach their destination safe, sound and successful; the same applies to your business.

More about Business Planning.